TIRANA, Dec. 28 – The number of construction permits hit a six year-high in the third quarter of 2017, when local government units issued some 310 permits worth more than Euro 100 million, according to INSTAT, the state statistical institute.
The region of Tirana once again led in the number of construction permits with some 65, but there was also a significant increase in Korà§a, Shkodra, Fier and Durres.
The construction permits in the third quarter of 2017 were mostly issued for residential buildings of 1 to 3 floors and some 102 for non-residential buildings including commercial, hotel and industrial facilities.
Albania has issued some 608 construction permits in the first three quarters of this year, almost double compared to the same period last year.
The number of permits has also grown as a result of an electronic platform on construction permits, in place since mid-2016 making the application process easier.
The increase also comes at a time amid tighter measures against illegal constructions and at a time when Albania is concluding a legalization process on dozens of thousands of illegal buildings in the pre-2014 period.
The number of construction permits has seen a sharp decline in the past five years dropping to a few hundreds down from more than 1,000 annually before 2011.
The construction sector has emerged as the key driver of Albania’s growth in the past couple of years, but that is mainly attributed to two major energy-related projects such as the Trans Adriatic Pipeline and the Devoll Hydropower plant.
While demand for new apartments in Tirana remains satisfactory, thousands of apartments remain unsold especially in Durres and Vlora coastal areas.
Developers have recently shifted to building tourists resorts and villages in coastal areas as tourism rapidly grows.
